Which of the following is true of consequential damages?

A) They result from a breach due to special circumstances that exist with a particular contract.
B) They are the sum of money equal to the real financial loss suffered by the injured party.
C) They cover any expenses paid out by the innocent party to prevent further loss.
D) They are awarded as a measure of punishment for the defendant's wrongful acts.

Consequential damages, also known as special damages, result from a breach due to special circumstances that exist with a particular contract. They are not the same as direct damages, which are the immediate and foreseeable losses that result from a breach. Consequential damages are unique to the specific contract and can include things like lost profits or other indirect losses that are not necessarily a direct result of the breach itself.